Puppet Warp is a distortion tool that provides an amazing amount of control in manipulating an image. You can literally treat images or objects on a layer (not a Background layer) like a puppet and bend them to suit your needs. You can protect areas from being affected by the warp, and you can even overlap parts of an image on top of another part of the same image, as in the example shown below (on the right).
Puppet Warp is useful not only for radical warping, as shown below, but also for all sorts of retouching projects, such as shaping the folds of a blouse, modifying a hair style, trimming a few inches from a waistline, etc. Use this warping technique to fix camera distortions, create unusual effects, or enhance a smile.